Data Center Infrastructure Investment, Global, 2024-2035

AI/HPC Workloads are Driving Transformational Growth

Global data center investment will continue on a high growth trajectory due to strong demand from hyperscale cloud and a high degree of data center activity in emerging economies. The burgeoning AI industry will further accelerate data center investments. A diverse range of industry players, including major hyperscale corporations, prominent colocation operators, small and medium-sized colocation providers, and emerging enterprise data centers, are concentrating their efforts on AI and its implications for design and infrastructure.

As higher computing densities require more efficient cooling, such as direct-to-chip, liquid immersion, and rear-door heat exchangers, data center operators are now implementing a strategic approach to construct larger, high-density data center facilities that can accommodate bigger workloads.

This study analyzes investment trends in the global data center industry and provides market forecasts for 3 data center types: colocation, hyperscale, and enterprise. The forecast period is 2024 to 2035, and the base year is 2025.

Report Summary - Data Center Infrastructure Market

The global data center infrastructure market investment was estimated at USD 329.5 billion in 2024 and is projected to reach approximately USD 1,457.5 billion by 2035, growing at an investment CAGR of about 11.2% from 2025 to 2035. Accelerating adoption of AI workloads, cloud computing, and high-density data center architectures is driving sustained capital deployment across power, cooling, and digital operations infrastructure within the broader Data Center Market.

Key Market Trends & Insights

• Hyperscale and colocation operators accounted for a significant share of global data center infrastructure investment in 2024, driven by multi-phase campus expansion strategies.
• In the U.S. and Europe, power availability and grid interconnection timelines are increasingly shaping investment decisions within the data center power infrastructure market.
• Rising rack densities and AI-driven compute requirements are accelerating investments in advanced cooling and electrical systems.
• Adoption of automation, monitoring, and digital twins is expanding the Data Center Infrastructure Management Market, supporting efficiency, uptime, and regulatory compliance.
• Asia Pacific is emerging as one of the fastest-growing investment regions, supported by cloud expansion, digital economy initiatives, and improving energy infrastructure.

Market Size & Forecast

• 2024 Investment Size: USD 329.5 Billion
• 2035 Projected Investment Size: USD 1,457.5 Billion
• Investment CAGR (2025-2035): 11.2%
• Hyperscale & Colocation: Primary investment drivers
• Power & Cooling: Highest capital intensity segments

The sustained rise in capital spending reflects a structural shift in the data center infrastructure market, where power readiness, thermal efficiency, and digital operations capabilities increasingly determine scalability. As AI and cloud workloads continue to expand, long-term investment momentum across the Data Center Market is expected to remain strong, supported by ongoing innovation in the data center power infrastructure market and the Data Center Infrastructure Management Market.

Market Overview - Data Center Infrastructure Market

The data center infrastructure market is being reshaped by a fundamental shift in compute demand driven by AI, machine learning, and high-density cloud workloads. Traditional data center architectures are no longer sufficient to support rising power densities, forcing the Data Center Market to rethink facility design, energy sourcing, and operational models. Infrastructure investment is increasingly dictated by electrical and thermal constraints rather than IT demand alone.

One of the most significant trends is the growing dominance of the data center power infrastructure market. Grid interconnection delays, substation constraints, and long lead times for electrical equipment are redefining project timelines and geographic feasibility. Operators are responding by securing long-term power purchase agreements, deploying modular power blocks, and integrating on-site energy storage and microgrids to improve resilience.

Cooling architecture is also undergoing rapid transformation. As rack densities move beyond conventional air-cooling thresholds, liquid-ready and hybrid cooling designs are becoming baseline requirements. This shift is elevating mechanical infrastructure from a support function to a strategic investment priority within the data center infrastructure market.

Digitalization is another defining trend. The Data Center Infrastructure Management Market is expanding as operators deploy DCIM, building automation systems, and digital twins to manage energy efficiency, uptime, and regulatory compliance. These platforms enable predictive maintenance, real-time monitoring, and AI-driven optimization across increasingly complex estates.

Modularization and prefabrication are accelerating infrastructure delivery by reducing construction risk and compressing deployment timelines. Factory-built electrical rooms, cooling blocks, and standardized shells are enabling repeatable expansion models, particularly for hyperscale and colocation facilities. As a result, the Data Center Market is moving toward industrialized capacity deployment rather than bespoke site development.

Collectively, these trends indicate that infrastructure-not compute-is now the primary determinant of scalability. Vendors and operators positioned across power, cooling, and digital operations layers are best placed to capture long-term value in the evolving data center infrastructure market.

Scope of Analysis - Data Center Infrastructure Market

This analysis examines the global data center infrastructure market over the study period 2024-2035, with 2025 as the base year. The scope covers infrastructure investments supporting hyperscale, colocation, and enterprise data centers, excluding application-layer cloud services and end-user software platforms.

The Data Center Market assessment includes IT infrastructure, physical infrastructure, and supporting systems such as power distribution, cooling, racks, and digital operations platforms. Particular emphasis is placed on the data center power infrastructure market, reflecting its growing role as a deployment bottleneck and investment driver. The Data Center Infrastructure Management Market is also included as a core enabling layer for operational intelligence and compliance.

Geographic coverage spans North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Market sizing and forecasts are derived using a combination of bottom-up and top-down methodologies, incorporating primary interviews, public disclosures, and proprietary industry databases.

The analysis evaluates macroeconomic conditions, energy availability, regulatory frameworks, technology evolution, and workload trends influencing infrastructure investment decisions. By integrating quantitative modeling with qualitative insights, the study provides a comprehensive view of structural shifts shaping the data center infrastructure market through 2035

Investment & Spending Forecast - Data Center Infrastructure Market

The global data center infrastructure market is witnessing a sustained surge in capital deployment as operators scale capacity to support cloud expansion, AI workloads, and high-density computing environments. Total infrastructure investment within the Data Center Market amounted to approximately USD 502.7 billion in 2025 and is projected to reach nearly USD 1,457.5 billion by 2035, representing a robust investment CAGR of about 11.2% between 2025 and 2035.

Investment momentum is being driven primarily by hyperscale and colocation operators accelerating long-term capacity buildouts, while enterprise operators continue targeted modernization and retrofit programs. A significant share of capital allocation is directed toward electrical and mechanical systems, reinforcing the strategic role of the data center power infrastructure market as power availability and grid readiness increasingly dictate deployment timelines.

Spending patterns indicate a shift from episodic construction cycles toward programmatic, multi-phase investment strategies. Early-period investments focus on unlocking power capacity and site readiness, while later phases emphasize scalability, redundancy, and efficiency optimization. Parallel growth in the Data Center Infrastructure Management Market reflects rising demand for automation, monitoring, and operational intelligence to manage increasingly complex, energy-intensive facilities.

Overall, the investment trajectory underscores a structural transformation in the data center infrastructure market, where long-term capital planning, energy alignment, and operational efficiency are becoming central to sustaining digital infrastructure expansion through the next decade.

Segmentation Analysis - Data Center Infrastructure Market

The data center infrastructure market can be analyzed across infrastructure type, data center model, and operational requirements, reflecting the complexity of modern digital facilities. From an infrastructure perspective, investment spans IT systems, physical infrastructure, and supporting site elements, with power and cooling emerging as the most capital-intensive layers.

Within the Data Center Market, hyperscale operators represent the largest source of incremental infrastructure demand, driven by AI-centric workloads and large-scale campus developments. Colocation providers are expanding capacity to serve hybrid cloud, AI adjacency, and interconnection-driven demand, while enterprise facilities focus on selective upgrades rather than greenfield expansion.

The data center power infrastructure market cuts across all deployment models, encompassing grid connectivity, substations, UPS systems, generators, and energy storage. Power availability increasingly determines where and how fast capacity can be deployed, elevating electrical infrastructure from a support role to a strategic differentiator.

Cooling and thermal management form another critical segmentation layer. Air-based systems are giving way to hybrid and liquid-ready architectures as rack densities rise. This transition directly impacts facility layout, water strategy, and long-term operational costs within the data center infrastructure market.

The Data Center Infrastructure Management Market spans monitoring, automation, analytics, and digital twin platforms that unify visibility across IT and physical layers. Adoption is strongest in hyperscale and colocation environments but is accelerating among enterprises facing ESG, uptime, and compliance pressures.

Across all segments, infrastructure decisions are increasingly shaped by energy efficiency, scalability, and lifecycle optimization rather than upfront cost alone, reinforcing the long-term strategic importance of the data center infrastructure market.

Growth Drivers - Data Center Infrastructure Market

Key growth drivers in the data center infrastructure market include rapid AI workload proliferation, rising rack densities, and accelerating cloud adoption. These forces push infrastructure requirements beyond historical norms, driving non-linear growth in power, cooling, and network systems.

Grid modernization and long-term energy procurement are major enablers within the data center power infrastructure market, unlocking previously constrained regions and enabling multi-phase campus development. Modular and prefabricated infrastructure further accelerates deployment by reducing construction risk and labor dependency.

Sustainability mandates and ESG-linked financing are also reshaping procurement priorities, increasing demand for high-efficiency systems and digital optimization platforms within the Data Center Infrastructure Management Market. Together, these drivers underpin sustained expansion across the Data Center Market.

Growth Restraints - Data Center Infrastructure Market

Despite strong fundamentals, the data center infrastructure market faces structural constraints. Grid interconnection delays, substation shortages, and long electrical equipment lead times remain primary bottlenecks within the data center power infrastructure market.

Skilled labor shortages, regulatory fragmentation, and rising construction complexity further slow deployment in certain regions. Additionally, enterprise budget constraints and competing digital priorities limit discretionary spending within parts of the Data Center Market.

These restraints do not reduce long-term demand but reshape deployment timing and geographic allocation, reinforcing the need for modular, energy-aligned infrastructure strategies.